Zinnia Tubes & Tyres Pvt Ltd vs. DCIT Circle-27(2), New Delhi – Assessment Year 2011-12 – Withdrawal of Appeal under Vivad Se Vishwas Scheme

Case Overview: Zinnia Tubes & Tyres Pvt Ltd vs. DCIT Circle-27(2), New Delhi – ITA No. 6513/DEL/2019

Case Number: ITA 6513/DEL/2019

Appellant: Zinnia Tubes & Tyres Pvt Ltd, Noida

Respondent: DCIT Circle-27(2), New Delhi

Assessment Year: 2011-12

Date of Filing: 2019-08-05

Order Type: Final Tribunal Order

Date of Order: 2021-01-08

Date Pronounced: 2021-01-08

Introduction

The case pertains to the assessment year 2011-12, where the appellant, Zinnia Tubes & Tyres Pvt Ltd, Noida, had filed an appeal against the order of the learned Commissioner of Income Tax (Appeals) [CIT(A)], New Delhi. The dispute involved tax arrears that were challenged by the appellant. However, during the proceedings, the appellant opted to settle the dispute under the Vivad Se Vishwas Scheme, 2020, leading to the withdrawal of the appeal.

Background of the Case

Zinnia Tubes & Tyres Pvt Ltd, a company based in Noida, filed its income tax return for the assessment year 2011-12. The case was later taken up by the DCIT Circle-27(2), New Delhi, for scrutiny. After the assessment, certain tax demands were raised, which the appellant challenged by filing an appeal before the CIT(A), New Delhi. The CIT(A) passed an order on 24.06.2019, against which the appellant further appealed to the Income Tax Appellate Tribunal (ITAT), Delhi Bench.

Opting for the Vivad Se Vishwas Scheme

While the appeal was pending before the ITAT, the Government of India introduced the Vivad Se Vishwas Scheme, 2020. The scheme was designed to resolve pending tax disputes by allowing taxpayers to settle their cases by paying a specified percentage of the disputed tax amount, thereby avoiding prolonged litigation.

Zinnia Tubes & Tyres Pvt Ltd opted to take advantage of this scheme to settle the tax arrears for the assessment year 2011-12. On 05.01.2021, the appellant, through its counsel, submitted a letter to the ITAT requesting the withdrawal of the appeal. The appellant also submitted a certificate issued under Section 5(1) of The Direct Tax Vivad Se Vishwas Act, 2020, which confirmed the settlement of the tax arrears under the scheme.

Proceedings Before the ITAT

The appeal was heard on 08.01.2021 by the ITAT Delhi Bench ‘A’, comprising Vice President Shri G.S. Pannu and Judicial Member Shri Sudhanshu Srivastava. During the hearing, the learned counsel for the appellant reiterated the request for withdrawal of the appeal, as the dispute had been settled under the Vivad Se Vishwas Scheme. The learned Senior Departmental Representative (DR), Shri M. Baranwal, raised no objections to the withdrawal of the appeal.

Tribunal’s Decision

After considering the submissions of both parties, the ITAT accepted the request for withdrawal of the appeal. The Tribunal acknowledged that the appellant had chosen to resolve the dispute under the Vivad Se Vishwas Scheme, which was in line with the government’s initiative to reduce pending litigation. As a result, the Tribunal dismissed the appeal as withdrawn.

The order was pronounced on the same day, i.e., 08.01.2021, in the presence of both parties through virtual hearing.

Conclusion

The decision to opt for the Vivad Se Vishwas Scheme by Zinnia Tubes & Tyres Pvt Ltd highlights the effectiveness of the scheme in resolving tax disputes amicably and efficiently. By choosing this route, the appellant was able to settle the tax arrears for the assessment year 2011-12 and avoid the uncertainties and delays associated with prolonged litigation.

The ITAT’s decision to allow the withdrawal of the appeal further underscores the importance of such schemes in promoting a dispute-free tax environment. Taxpayers facing similar disputes may consider the benefits of such settlement schemes to achieve quicker resolutions.

Keywords: ITAT, Income Tax Appellate Tribunal, Zinnia Tubes & Tyres Pvt Ltd, Vivad Se Vishwas Scheme, Tax Dispute, Assessment Year 2011-12, Tribunal Order, Withdrawal of Appeal

Zinnia Tubes & Tyres Pvt Ltd vs. DCIT Circle-27(2), New Delhi – Assessment Year 2011-12 – Withdrawal of Appeal under Vivad Se Vishwas Scheme